Bitcoin-led crypto rout erases nearly half a trillion in a week

Mumbai – Almost half a trillion dollars has been wiped off cryptocurrencies in less than a week as a sell-off led by Bitcoin accelerated.

Total crypto market value has slumped by US$467.6 billion (S$594 billion) since Jan 29, according to CoinGecko data.

Bitcoin on Feb 3 tumbled to its lowest level since US President Donald Trump was re-elected in November 2024 and ushered in a more crypto-friendly administration.

The original cryptocurrency, which hit a 15-month low of US$72,877 in the United States, regained some ground in Asia on Feb 4, trading at US$76,200 at 10am in Singapore. It is down 13 per cent in 2026 and 39 per cent from its Oct 6 peak above US$126,000.

“Asia morning sentiment is cautious and defensive. The mood is still risk-off, but the pace of forced selling has slowed compared with the US close,” said Ms Rachael Lucas, an analyst at BTC Markets. “Bitcoin printing sub-US$73,000 has pushed sentiment into extreme fear.”

The declines follow a volatile week across global markets that saw sharp swings in gold and silver.

While precious metals found buyers on Feb 3 and 4 after recent losses, cryptocurrencies failed to attract support. Bitcoin and US equities fell as rising tensions between the US and Iran prompted investors to seek safe assets.

Bitcoin’s plunge is raising doubts that it functions as a kind of “digital gold” as it has failed to act as a safe haven during a period of heightened geopolitical uncertainty.

Investor Michael Burry warned that Bitcoin has been exposed as a purely speculative asset, failing to establish itself as a hedge comparable to precious metals.

Historically, there has been a “tremendous amount” of near-religious belief in holding on to Bitcoin no matter the situation, said Mr Michael Novogratz, chief executive of Galaxy Digital LP.

“And somehow that virus or that fever broke, and you started seeing some selling.” BLOOMBERG